Post Utme Noun 2024 Economics Question 31

Practice objective / multiple choice question 31 from the 2024 Post Utme Noun Economics examination.

Post Utme Noun 2024 Economics Objective / Multiple Choice
Question 31 POST_UTME_NOUN • 2024 • ECONOMICS • objective

Consider a country with a fixed money supply of ₦100 billion and a central bank that targets an inflation rate of 2%. If the current inflation rate is 4%, what is the likely action the central bank will take to achieve its target?

Answer Options

A. Increase the money supply
Correct Answer B. Decrease the money supply
C. Maintain the current money supply
D. Increase interest rates
Correct Answer
B
Correct Option:
Decrease the money supply

About This Question

This is Post Utme Noun 2024 Economics Question 31. It is one of the objective questions from the 2024 Post Utme Noun Economics examination.

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